Origin of the duty rate will drop his head will be formed to improve the medium-term Money Tips

Category: Money tips Release Date: 2006-02-24

Source: Xu Bin Guotai Junan

Wednesday the Ministry of Finance to improve the duty rate in the context of the broader market following a sharp twist of the trend, Shanghai stock market dropped 281 points the day, the Shenzhen market dropped 829 points a day. From the trend point of view, and form a broad market day Tiaokongdikai inverted hammer-type movement, the strong form of destruction of short-term there will still be room for adjustment.

Weighed on the market rate of stamp duty

Today, the Ministry of Finance decided to May 30, 2007, the adjustment of securities (stock) trading stamp duty from the current 1 �adjusted to 3 � Of stamp duty rates to improve their intention was to reduce speculation in the market environment, according to information shows the current A-share market 646 shares changing hands on the 14 trading days up to 100% more noticeable climate of speculation, thus increasing the rate of stamp duty in the cooling market, a手段. But the increase in the rate of stamp duty to bring to the market the actual pain, it will lead to sharp drop in volume of market transactions, transaction costs increase is bound to hurt the market sentiment, the stamp duty rates have increased for the market is real bad. Historical experience can also prove this point, most typically in May 1997 the duty rate of upward adjustment, it seems completely out of step with the market's peak, giving the impression that the increase in the rate of stamp duty in 1997 led to the end of the bull market. If history repeats itself, then this will also allow the adjustment of stamp duty tape to build a medium head.

On the other hand, this increase in the rate of stamp duty the psychological factors that the market will also have a greater impact. Management has already started pre-cooling to the market, including the frequent to raise the deposit reserve ratio, and in the recent one-off raising interest rates, deposit reserve ratio and exchange rate fluctuation band, showing that the management has clearly strengthened the regulation of the market. The increase in the rate of stamp duty impact on the market from the point of view, which is clearly stronger than a modest increase in interest rates and deposit reserve ratio, and the increase in the rate of stamp duty also means that management control measures are being strengthened, the future expectations of more regulation and control measures introduced the eyes of investors will also be strengthened. Therefore, no matter from which perspective, the stamp duty rates have increased both the market will pose a negative impact.

Operations need to be cautious

For future operations, I believe that investors still have to be careful mainly to build a medium-term if the tape head, then the room for adjustment is not too small, so investors in the future be a corresponding reduction in positions. Operation, investors may be appropriate to bargain-hunting on two aspects of the stock market: First, some defensive blocks, especially in high-quality large cap blue chips plate, because the stamp duty on securities transactions of the revision is mainly to reduce the market for the investment climate of the , and some defensive plates are expected to become a haven for funds. Second, investors can focus on opportunities in the fund section, which is due to the Fund on the one hand there is a higher worse resale values, and its broad market decline during the investment value will be more obvious on the other hand, the Fund's transactions do not need to levy stamp duty, so the Ministry of Finance to improve the context of the stamp duty rates, the Fund is expected to become the market favored plate objects. Key species: Fund Kaiyuan (184,688) are not affected by changes in stamp duty on the defensive nature of species. Whenever Quotes turn dark, due to the presence of worse resale values, so that closed-end funds in the market to become a safer investment targets. As a long-term investment value of the closed-end funds, its continued profitability is considerable, long-term increase in the rate of return has also been at the forefront of the entire closed-end funds. In addition, the sale of the fund shall be exempted from stamp duty, the basic increase in stamp duty from bad influence and become a safer defensive species present. The secondary market, the Fund has its own run along the trend of moving average support rendered shock in case of continuous adjustment, may be bargain-hunting interest.